Citigroup bosses refuse bonuses to help the hard-hit firm

Citibank executives and senior advisor Robert Rubin, formerly of the US Treasury, will forego their 2008 bonuses to help the financial situation

Citigroup's top executives, and senior adviser Robert Rubin, are to forego their 2008 bonuses following a year of heavy losses and a £35bn US government rescue.

In a memo to employees, Citi chief Vikram Pandit said the bank's overall bonus pool will be 'dramatically lower' than a year ago.

Pandit, his chairman Sir Win Bischoff, and Rubin decided to refuse their bonuses following pressure from Washington.

Citi was required to limit executive pay as part of November's government bailout.

The Citi chief wrote: 'The most senior leaders should be affected the most. That is why Win Bischoff and I will receive no bonus for 2008.

'Win and I believe this is fair, in light of the challenges of the year and the need for compensation elsewhere in the organisation.'

The memo said Rubin felt that, under the circumstances, the funds that would have been used for his bonus could be better spent on other employees.

Rubin, a former Treasury secretary in the Clinton administration, has banked more than $115million since he joined Citi in 1999. The bank is laying off 53,000 staff at locations across the world, including London.

Citi does not break out its overall bonus pay, but has revealed that the pool for overall staff pay and benefits totalled $33.9bn in 2007.